$225M in USDT Recovered Through Coinbase–Secret Service Operation
Coinbase aids U.S. Secret Service in a $225M USDT recovery tied to Southeast Asian pig butchering crypto scams.
In a landmark victory against cryptocurrency fraud, Coinbase has helped the U.S. Secret Service recover $225 million in USDT linked to widespread 'pig butchering' scams operating across Southeast Asia. The operation, one of the largest crypto seizures in the agency's history, illustrates the growing collaboration between digital asset platforms and law enforcement in combating financial crime.
According to a June 24 announcement, Coinbase played a critical role in supporting a multi-agency investigation by tracing onchain transactions and identifying victims eligible for restitution. The Department of Justice initiated the enforcement action on June 18, following months of probe into a fraud network that exploited victims by cultivating fake relationships before coercing them into investing in fraudulent crypto schemes.
The funds in question were initially frozen in late 2023 when Tether, the USDT issuer, blocked 39 wallet addresses holding stolen assets. Many of these wallets were eventually linked to 140 accounts on the exchange OKX. Disturbingly, these accounts were reportedly operated by individuals trafficked into scam operations and forced to manage illicit investment platforms.
Coinbase’s involvement intensified during a concentrated investigative effort with the Secret Service between February 26 and 29, 2024. This collaboration enabled agents to trace illicit funds back to wallets hosted on Coinbase, uncovering over 130 affected users who had unknowingly sent crypto to scam addresses. Collectively, these losses amounted to at least $2.3 million.
The exchange emphasized that its blockchain analytics and swift compliance with subpoenas were essential to identifying the scam's scope. Coinbase has since published customer guidance on how to provide transaction data to law enforcement for further restitution efforts.
The seized USDT was subsequently burned by Tether and reissued, then transferred to a wallet under Secret Service control. Additional assistance came from OKX and other unnamed exchanges, showcasing the sector-wide commitment to policing illicit crypto activity.
This case underscores the increasing effectiveness of blockchain forensics in tackling digital fraud. It also serves as a cautionary tale for users, highlighting the sophistication of pig butchering scams that combine emotional manipulation with financial deception.
